Finnish government takes stake in Nokia

The country's investment arm aims to keep Nokia Finnish.

The government investment arm of Finland, Solidium has acquired a stake in Nokia to increase its influence over the former phone manufacturer that now produces telecom network gear.

Solidium now owns a 3.3 per cent stake in the country's largest company which it purchased for $1.04bn.

The company's CEO Antti Makinen noted that it has taken a more active role in all of the companies it owns this year and though Solidium is not currently seeking a seat on Nokia's board, it might consider the option later down the line.

A decade ago, Nokia was on top of the global phone market and accounted for four per cent of Finland's GDP and 20 per cent of its foreign exports. The company's downfall had staggering effects on the country and it is only now managing to recover from a long period of stagnation.

Nokia has shifted its focus from the mobile phone business to the telecom network industry where it is trying to carve out a place for itself amongst its competition, Sweeden's Ericsson and China's Huawei.

According to Makinen, Solidium is trying to own a stake in the country's large companies with the aim of keeping them Finnish. The company currently manages minority holdings in 13 different Finnish businesses listed on the stock market.